What is the portfolio weight on the spdrs

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Reference no: EM132085483

Question: You want to build a two asset portfolio including SPDRs and T-Bills that has an expected return of 5.50%. A SPDR is a Standard and Poor's Depositary Receipt. A SPDR is an exchange traded fund (ETF) that is designed to generate the same return as the S&P 500 index. What is the portfolio weight on the SPDRs? Assume that the return on the T-Bills is 4.0% and the expected return on the S&P 500 is 10.0%.

Reference no: EM132085483

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